Matters of money were the primary subjects at Monday’s Chenoa City Council meeting. Insurance and city budgeting were the main points of emphasis.

Commissioner Mike Cleary made it obvious that he was not in favor of raising property taxes and Mayor Don Corrie gave serious thought to the question before making his vote after the council discussed the property tax issue.

The property tax question focused on raising the total a certain amount that could go beyond the ceiling of 105 percent. If decided, this would mean that a public hearing would be required and approval would have to be done before Jan. 1.

The current amount is $197,100. An increase of 105 percent, which would not require a public hearing, would make it $206,900. The commissioners were figuring this would raise the property tax approximately $5 per owner.

A different matter on the agenda but still related was the thought of raising the sales tax. An argument made on this point was that this would affect not only city residents, but also visitors who were purchasing gasoline or stopping at a restaurant or store.

City Attorney Al Freehill pointed out that a 1 percent increase would raise approximately $179,000 while an increase of 0.75 percent would total approximately $121,000.

“Let them take their choice, as far as I’m concerned,” Cleary said when discussing the potential increase of more than 105 percent of the property tax question or the raising of the sales tax.

The commission voted 3-1 in favor of raising the property tax. The lone vote against it was Cleary’s.

It appeared that the vote might end up deadlocked. Corrie weighed the question in his head before providing the third vote. With Commissioner Ed Straw absent, Corrie’s vote could have created a 2-2 tie.

The sales tax question appears to be headed for a public referendum to be put on the April ballot. If approved, it would not go into effect until Jan. 1, 2014.

Corrie brought up the need to cut spending within the city’s budget. He pointed out the possibility of trimming one fulltime position.

He also asked each of the three commissioners present what they thought of reduction.

Cleary and Commissioner Eric Rhoda said that their departments were likely to have smaller budgets simply because work that needed to get done — sidewalk work, tree trimming and cutting, and other stuff — were done or near completion and won’t need to be dealt with for some time, thus saving some expenses.

“Nobody is wanting to cut back on expenses that could be reduced,” Corrie said.

The council approved a $60,000 addition to the loan payment of Well No. 6.

Commissioner Karen White was practically caught in the middle of an insurance situation that has been brewing. The city’s insurance is part of her department responsibilities.

Page 2 of 2 - White was looking at trying to get the insurance locally after Rachel Johnson, who runs her own agency in the city, approached her about possibly providing the policy.

Bill Hennings of the Humbert Insurance Agency of Elmhurst is the current agent for the city. He was told that the city had saved $60,000 through October with the plan he had provided.

Hennings said he had formal proposals for next year ready when he received a letter from White indicating he had been fired.

After a brief discussion that seemed to put both parties on the same page, Hennings spoke of his proposal and felt the Humana plan was the best way to go.

Corrie commented that he is typically in favor of keeping business local, but that things had gone well with Hennings and was in favor of keeping him on for another year and let bids be brought for 2014.

Cleary also felt it was better not to make a change at this time, even though he favors local business. He felt the city has a good working relationship with Hennings but it was White’s decision since it fell under her departmental responsibilities.

Rhoda, who was also asked his opinion by the mayor, also felt it was up to White to make a decision because it was her department.

In commissioner reports, Rhoda pointed out that, according to a report he had read, motor fuel tax money was decreasing all over. He said this is where money comes from to make street repairs.

He added that there is a three-block stretch on Maple Street that will need to be resurfaced.